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Using machine learning to estimate the heterogeneous impact of Airbnb on house prices: Evidence from Corsica

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  • Brunstein, Daniel
  • Casamatta, Georges
  • Giannoni, Sauveur

Abstract

This study investigates the influence of Airbnb on property prices in Corsica. Leveraging machine learning techniques, we obtain more robust results than those achieved with conventional methods and uncover heterogeneous effects of Airbnb on property values. Our analysis reveals that a 1% increase in Airbnb listings leads to an average 0.21% rise in house prices. Interestingly, this effect is more pronounced in economically less developed regions, such as inland municipalities and remote seaside resorts, compared to traditionally popular tourist destinations and urban areas.

Suggested Citation

  • Brunstein, Daniel & Casamatta, Georges & Giannoni, Sauveur, 2025. "Using machine learning to estimate the heterogeneous impact of Airbnb on house prices: Evidence from Corsica," Journal of Housing Economics, Elsevier, vol. 67(C).
    • Handle: RePEc:eee:jhouse:v:67:y:2025:i:c:s1051137725000038
    DOI: 10.1016/j.jhe.2025.102044
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    More about this item

    Keywords

    Short-term rental; Housing market; Machine learning; Heterogeneous effects;
    All these keywords.

    JEL classification:

    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • Z30 - Other Special Topics - - Tourism Economics - - - General

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